PUBLICATIONS

@workingpaper{Asongu2012bp,
title = {Development thresholds of foreign aid effectiveness in Africa},
author = {Simplice A Asongu},
editor = {African 2012 Governance and Development Institute WP/12/010},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Development-thresholds-of-foreign-aid-effectiveness-in-Africa.pdf},
year = {2012},
date = {2012-04-01},
abstract = {Purpose – This paper examines whether initial levels in GDP growth, GDP per capita growth
and inequality adjusted human development matter in the impact of aid on development. In
substance its object is to assess if threshold development conditions are necessary for the
effectiveness of foreign aid in Africa.
Design/methodology/approach – The panel quantile regression technique enables us to
investigate if the relationship between development dynamics and development assistance differs
throughout the distributions of development dynamics.
Findings – Three main findings are established. (1) With slight exceptions, the effectiveness of
aid in economic prosperity (at the macro level) increases in positive magnitude across the
distribution. This implies high-growth countries are more likely to benefit from development
assistance (in terms of general economic growth) than their low-growth counterparts. (2) The
positive nexus between aid and per capita economic growth displays nonlinear patterns across
distributions and specifications, with the correlations broadly higher in top quantiles than in
bottom quantiles after controlling for the unobserved heterogeneity. (3) The aid-human
development nexus is negative and almost similar in magnitude across distributions and
specifications.
Practical implications – As a policy implication, there is need to improve management of aid
funds destined for health and education projects in the sampled countries. Moreover, given the
magnitude of the nexuses, while blanket aid initiatives could be applied for policies targeting the
HDI (due to the absence of significant differences in the magnitude of estimated coefficients),
such are unlikely to succeed for aid targeting economic prosperity at macro and micro levels.
From the weight of the findings, given a policy of balancing the impact of aid, it could be
inferred that low-growth countries would need more aid than their high-growth counterparts
because of the less positive effects in the former countries.
Originality/value – This paper contributes to existing literature on the effectiveness of foreign
aid by focusing on the distribution of the dependent variables (development dynamics). It is
likely that high- and low-growth countries respond differently to development assistance.},
keywords = {Foreign Aid; Political Economy; Development; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2012bq,
title = {Institutional benchmarking of foreign aid effectiveness in Africa},
author = {Simplice A Asongu},
editor = {African 2012 Governance and Development Institute WP/12/028},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Institutional-benchmarking-of-foreign-aid-effectiveness-in-Africa.pdf},
year = {2012},
date = {2012-04-01},
abstract = {This paper integrates two main strands of the aid-development nexus in assessing whether
institutional thresholds matter in the effectiveness of foreign aid on institutional development in
53 African countries over the period 1996-2010. Eight government quality indicators are
employed: rule of law, regulation quality, government effectiveness, corruption, voice &
accountability, control of corruption, political stability and democracy. Three hypotheses are
tested and the following findings are established: (1) Institutional benefits of foreign-aid are
contingent on existing institutional levels in Africa. (2) But for a thin exception (democracy),
foreign-aid is more negatively correlated with countries of higher institutional quality than with
those of lower quality. (3) The institutional benefits of foreign-aid are not questionable until
greater domestic institutional development has taken place. The reverse is true instead.
Government quality benefits of development assistance are questionable in African countries
irrespective of prevailing institutional quality levels.},
keywords = {Foreign Aid; Political Economy; Development; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2012br,
title = {The impact of health worker migration on development dynamics: evidence of wealth-effects from Africa},
author = {Simplice A Asongu},
editor = {African 2012 Governance and Development Institute WP/12/037},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/The-impact-of-health-worker-migration-on-development-dynamics.-Evidence-ofwealth-effects-from-Africa.pdf},
year = {2012},
date = {2012-04-01},
abstract = {This paper examines three relevant hypotheses on the incidence of health worker
migration on human development and economic prosperity (at macro and micro levels) in
Africa. Owing to lack of relevant data on Health Human Resource (HHR) migration for the
continent, the subject matter has remained empirically void over the last decades despite the
acute concern of health professional emigration. Using quantile regression, the following
findings have been established. (1) The effect of HHR emigration is positive (negative) at low
(high) levels of economic growth. (2) HHR emigration improves (mitigates) human development
(GDP per capita growth) in low (high) quantiles of the distribution. (3) Specific differences in
effects are found in top quantiles of human development and low quantiles of GDP per capita
growth where, the physician (nurse) emigration elasticities of development are positive
(negative) and negative (positive) respectively. As a policy implication, blanked health-worker
emigration control policies are unlikely to succeed across countries with different levels of
human development and economic prosperity. Hence, the policies should be contingent on the
prevailing levels of development and tailored differently across the most and least developed
African countries.},
keywords = {Welfare; Health; Human Capital; Migration},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2012bs,
title = {Are financial benefits of financial globalization questionable until greater domestic financial development has taken place?},
author = {Simplice A Asongu},
editor = {African 2012 Governance and Development Institute WP/12/007},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Are-the-financial-benefits-of-financial-globalisation-questionable-until-greater-domestic-financial-development-has-taken-place.pdf},
year = {2012},
date = {2012-03-01},
abstract = {Purpose – The issue of which financial initial conditions are necessary to materialize the
benefits of financial globalization remains open to debate in the literature. In this paper, we try to
put some empirical structure on the concept of financial threshold conditions in order to give
policymakers guidance on the Kose et al.(2011) and Henry(2007) hypothesis. Its object is to
assess if financial benefits of financial globalization are questionable until greater domestic
financial development has taken place in developing countries.
Design/methodology/approach – In framing the financial dimension in a more concrete and
tractable manner, we probe into the concerns of how domestic financial initial dynamics of
depth(economic and financial systems), efficiency(banking and financial systems), activity
(banking and financial systems) and size play-out in the financial development benefits of
financial globalization. The estimation approach consists of assessing the impact of financial
globalization through-out the conditional distributions of domestic financial development
dynamics.
Findings – The introduction of previously missing financial dimensions into the debate
generates a number of important findings. Only financial initial(threshold) conditions in depth
and size are necessary to materialize the benefits of financial globalization. Domestic dynamics
of efficiency and activity(credit) do not confirm the hypothesis.
Practical implications – Depending on the context of sampled countries, the appropriate role of
policy has always been either to stem the tide of capital flows or encourage them. Policymakers
who have been viewing their challenges exclusively from the later perspective for benefits in
growth(finance) might be getting the financial dynamics badly wrong.
Originality/value – Blanket financial development policies may not reap the financial benefits
of financial globalization until domestic financial dynamics of depth, efficiency, activity and size
are critically considered. The introduction of the last three previously missing components in the
literature sheds more light on the globalization-development nexus.},
keywords = {Banking; International investment; Financial integration; Development},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2012bt,
title = {Determinants of Health Professionals’ Migration in Africa},
author = {Simplice A Asongu},
editor = {African 2012 Governance and Development Institute WP/12/009},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Determinants-Health-Professional-Migration-in-Africa.pdf},
year = {2012},
date = {2012-03-01},
abstract = {How do economic prosperity, health expenditure, savings, price-stability, demographic
change, democracy, corruption-control, press-freedom, government effectiveness, human
development, foreign-aid, physical security, trade openness and financial liberalization play-out
in the fight against health-worker crisis when existing emigration levels matter? Despite the
acute concern of health-worker crisis in Africa owing to emigration, lack of relevant data has
made the subject matter empirically void over the last decades. This paper assesses the
theoretical postulations of the WHO report on determinants of health-worker migration. Findings
provide a broad range of tools for the fight against health-worker brain-drain. As a policy
implication, blanket emigration-control policies are unlikely to succeed equally across countries
with different levels of emigration. Thus to be effective, immigration policies should be
contingent on the prevailing levels of the crisis and tailored differently across countries with the
best and worst records on fighting health worker emigration.},
keywords = {Welfare; Health; Human Capital; Migration},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2012bu,
title = {Globalization and health worker crisis: what do wealth-effects tell us?},
author = {Simplice A Asongu},
editor = {African 2012 Governance and Development Institute WP/12/023},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Globalization-and-health-worker-crisis.-What-do-wealth-effects-tell-us.pdf},
year = {2012},
date = {2012-03-01},
abstract = {Owing to lack of relevant data on health human resource (HHR) migration, the empirical
dimension of the health-worker crisis debate has remained void despite abundant theoretical
literature. A health worker crisis is overwhelming the world. Shortages in health professionals
are reaching staggering levels in many parts of the globe. This paper complements existing
literature by empirically investigating the WHO hypothetical determinants of health-worker
migration in the context of globalization when income-levels matter. In plainer terms, the work
explores how the wealth of exporting countries play-out in the determinants of HHR emigration.
We assess the determinants of emigration in the health sector through-out the conditional
distribution of health human resource emigration. Findings provide very targeted policy
implications based on income-levels and existing emigration levels for both physician and nurse
worker crises. Beside specific policy recommendations, we also outlined broad policy measures
for source-countries, recipient-states and regional (international) institutions.},
keywords = {Welfare; Health; Human Capital; Migration},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2012bv,
title = {The political economy of development assistance: peril to government quality dynamics in Africa},
author = {Simplice A Asongu},
editor = {African 2012 Governance and Development Institute WP/12/008},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/The-political-economy-of-development-assistance.-Peril-to-government-quality-dynamics-in-Africa.pdf},
year = {2012},
date = {2012-02-01},
abstract = {This paper assesses the effectiveness of foreign aid in improving government institutions
in 52 African countries using updated data (1996-2010). Findings suggest development
assistance deteriorates government quality dynamics of corruption-control, political-stability,
rule of law, regulation quality, voice and accountability and government effectiveness. It is
therefore a momentous epoque to solve the second tragedy of foreign aid; high time economists
and policy makers start rethinking the models and theories on which foreign aid is based. In the
meantime, it is up to people who really care about the poor to hold aid agencies accountable for
results.},
keywords = {Foreign Aid; Political Economy; Development; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2012bw,
title = {Fighting corruption in Africa: do existing corruption-control levels matter?},
author = {Simplice A Asongu},
editor = {African 2012 Governance and Development Institute WP/12/012},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Fighting-corruption-in-Africa.-Do-existing-corruption-control-levels-matter.pdf},
year = {2012},
date = {2012-02-01},
abstract = {Purpose – Are there different determinants in the fight against corruption across African
countries? Why are some countries more effective at battling corruption than others? To assess
these concerns we examine the determinants of corruption-control throughout the conditional
distribution of the fight against corruption using panel data from 46 African countries for the
period 2002-2010.
Design/methodology/approach – The panel quantile regression technique enables us to
investigate if the relationship between corruption-control and the exogenous variables differs
throughout the distribution of the fight against corruption.
Findings – Results could be summarized in the following. (1) Greater economic prosperity
leads to less corruption-control and the magnitude of the effect is more important in countries
where the fight against corruption is high. (2) Regulation quality seems bimodal, with less
positive effects in the tails: among the best and least fighters of corruption. (3) There is support
for a less negative consequence of population growth in countries that are already taking the
fight against corruption seriously in comparison to those that are lax on the issue. (4) Findings on
democracy broadly indicate the democratization process increases the fight against corruption
with a greater magnitude at higher quantiles: countries that are already taking the fight seriously.
(5) The relevance of voice and accountability in the battle against corruption decreases as
corruption-control is taking more seriously by the powers that be. (6) Good governance
dynamics of political stability, government effectiveness and the rule of law gain more
importance in the fight against corruption when existing levels of corruption-control are already
high.
Social implications – Our results suggest that the determinants of corruption-control respond
differently across the corruption-control distribution. This implies some current corruptioncontrol
policies may be reconsidered, especially among the most corrupt and least corrupt
African nations. As a policy implication, the fight against corruption should not be postponed,
doing so will only reduce the effectiveness of policies in the future. The rewards of institutional
reforms are more positive in countries that are already seriously engaged in the corruption fight.
Originality/value – This paper contributes to existing literature on the determinants of
corruption by focusing on the distribution of the dependent variable(control of corruption). It is
likely that good and poor corruption fighters respond differently to factors that influence the
fight against corruption. There are subtle institutional differences between corrupt and clean
nations that may affect corruption-control determinants and government efficacy in the fight
against corruption.},
keywords = {Corruption; Democracy; Government quality; Quantile regression; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2012bx,
title = {Fighting corruption with cultural dynamics: when legal-origins, religiousinfluences and existing corruption-control levels matter},
author = {Simplice A Asongu},
editor = {African 2012 Governance and Development Institute WP/12/015},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Fighting-corruption-with-cultural-dynamics-when-existing-corruption-control-levels-matter.pdf},
year = {2012},
date = {2012-02-01},
abstract = {Are there different determinants in the fight against corruption across developing
countries? Why are some countries more effective at battling corruption than others? To
investigate these concerns we examine the determinants of corruption-control throughout the
conditional distribution of the fight against corruption using panel data from 46 African countries
for the period 2002-2010. Our findings demonstrate that blanket corruption-control policies are
unlikely to succeed equally across countries with different legal-traditions, religious-influences
and political wills in the fight against corruption. Thus to be effective, corruption policies should
be contingent on the prevailing levels of corruption-control and tailored differently across the
best and worst corruption-fighting countries especially with respect to democracy, population
growth and economic prosperity.},
keywords = {Corruption; Democracy; Government quality; Quantile regression; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}

@workingpaper{Asongu2012by,
title = {Globalization and Africa: implications for human development},
author = {Simplice A Asongu},
editor = {African 2012 Governance and Development Institute WP/12/022},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Globalisation-and-Africa.-Implications-for-Human-Development.pdf},
year = {2012},
date = {2012-02-01},
abstract = {Purpose – The purpose of this paper is to assess the effects of trade and financial globalization
on human development in 52 African countries using updated data (1996-2010) and a new
indicator of human development (adjusted for inequality).
Design/methodology/approach – The estimation technique used is a Two-Stage-Least Squares
Instrumental Variable methodology. Instruments include: income-levels, legal-origins and
religious-dominations. The first-step consists of justifying the choice of the estimation technique
with a Hausman-test for endogeneity. In the second-step, we verify that the instrumental
variables are exogenous to the endogenous components of explaining variables (globalization
dynamic channels) conditional on other covariates (control variables). In the third-step, the
strength and validity of the instruments are assessed with the Cragg-Donald and Sargan
overidentifying restrictions tests respectively. Robustness checks are ensured by: (1) use of
alternative globalization indicators; (2) endogeneity based estimation; (3) adoption of two
interchangeable sets of instruments; (4) estimation with a technique that controls for timeinvariant
unobservable shocks that affect openness and human development simultaneously.
Findings – Findings broadly indicate that while trade globalization improves human
development (consistent with the neoliberal theory), financial globalization has the opposite
effect (in line with the hegemony thesis). The ‘life expectancy’ component of the HDI weighs
most in the positive impact of trade globalization on human emancipation.
Originality/value – These findings are based on very recent data. Usage of the inequality
adjusted human development index first published in 2010, corrects past works of the bulk of
criticisms inherent in the first index.},
keywords = {Globalization; Human development; Africa},
pubstate = {published},
tppubtype = {workingpaper}
}